October 16, 2009—Issue 28
The General Assembly convened on Wednesday, October 14, for Veto Session. Various vetoes and other legislative matters were acted upon. This edition of the TFI Report provides synopses of developments that are likely of interest to TFI members.
HB 2239—Repealer of Partnership Deduction BIMP Provision
HB 2239 repeals a partnership deduction provision in the budget implementation (“BIMP”) bill (SB 1912) that became P.A. 96-45. Generally, a provision in the BIMP provided for the elimination of the partnership deduction from the person property replacement tax (“PPRT”) for “reasonable compensation,” thereby increasing partnership taxes. HB 2239 repeals this BIMP provision. HB 2239 passed the Senate on a vote of 57-00-00. The bill is on the Order of Concurrence in the House. HB 2239 may be accessed at the following link: click here.
HB 4599—Sales Tax Exemption for Energy in Manufacturing
HB 4599, an initiative of the Illinois Manufacturers Association, is a bill to provide a tax exemption to manufacturers for energy used in the manufacturing process. If signed by the Governor, the bill would join Illinois with 21 other states that provide some sort of similar exemption for manufacturers. The bill has passed the House and is currently assigned to the Senate Revenue Committee. HB 4599 may be accessed at the following link: click here.
HB 1409—Bill to Move Governor’s Budget Address to March 24
HB 1409 is a bill to provide Governor Pat Quinn additional time to present his budget address in 2010—the date of the budget address would be moved from February 17 to March 24. HB 1409 may be accessed at the following link: click here.
Cook County Sales Tax & Override Requirement
HB 4624 is a bill that would have entirely rolled back the relatively recent 1% increase in the sales tax in Cook County. It required a three-fifths majority vote and, on October 14, lost in the House on a vote of 065-051-000. HB 4625 & SB 588 are bills that would change from four-fifths to three-fifths the number of votes necessary for the Cook County Board of Commissioners to override a veto by the Cook County President. HB 4625 passed the House on a vote of 095-018-002. SB 588 passed the Senate on a vote of 53-01-02. The bills may be accessed at the following links:
HJRCA 37—Constitutional Amendment Resolution to Limit Appropriations
HJRCA 37, sponsored by Rep. Keith Farnham, is a constitutional amendment resolution, to, if its substance is passed by the General Assembly and subsequently the State’s electorate, limit aggregate appropriations and transfers from the general funds for a fiscal year to the aggregate appropriations and transfers in the previous fiscal year as adjusted by the five-year annual change in per capital income. The limitation may be by-passed for a fiscal year if the Governor calls a fiscal emergency and the General Assembly subsequently jointly resolves to allow such by a three-fifths vote of both chambers. The resolution provides that excess funds are to be placed in budget stabilization funds with certain excess amounts subject to refund.
On October 14, the resolution was considered in the House State Government Committee. TFI President Tom Johnson slipped in general support of HJRCA 37 with the modification that he believes any funds subject to refund under the resolution’s language should be used to offset the State’s pension debt rather than be given as refunds. Mr. Johnson supports the general idea of budget discipline and the placement of the resolution on the ballot.
HJRCA 37 may be accessed at the following link: click here.
HJRCA 31—Gubernatorial Recall
HJRCA 31 is a resolution to put a constitutional amendment on the ballot that would allow for the recall of the Governor. The resolution has passed both chambers, so the recall provision will be placed on the November 2010 ballot for consideration by the electorate. HJRCA 31 may be accessed at the following link: click here.
Quick Links to Other Measures That May be of Interest to Some TFI Members
Following are some links to other bills of note:
Recently Released Information
The following reports were recently released:
- The Tax Foundation recently released Fiscal Fact No. 194 entitled, “Where Do State and Local Governments Get Their Tax Revenue?” In the Fiscal Fact, the Tax Foundation reports that Illinois receives 37.1 percent of the State and local tax revenue in Illinois comes from property taxes. The Fiscal Fact may be accessed at the following link: click here.
- A group of parties (click here) interested in education policy have released a new report entitled, “Burnhma 2.0: Plan For Education,” which may be accessed at the following link: click here.
- The Commission on Government Forecasting and Accountability (“COGFA”) has released a new report entitled, “Wagering in Illinois: 2009 Update,” which may be accessed at the following link: click here.
And Finally . . .
The second period of Veto Session is October 28-30.
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